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Understanding Wage Garnishment in Maryland: What You Need to Know
Tuesday, January 14, 2025
If you're a Maryland resident facing financial difficulties, you might have heard the term "wage garnishment" and felt a pang of worry.
Here at Broumas Law Group, we understand the stress this can bring. Let's demystify wage garnishment in Maryland, explain your rights, and discuss how you might navigate this situation.
What is Wage Garnishment?
Wage garnishment is a legal procedure where a portion of your earnings is withheld by your employer to pay off a debt.
This can happen due to unpaid taxes, child support, student loans, or judgments from lawsuits.
In Maryland, this process is regulated by both state and federal laws to ensure that you're not left without means to support yourself.
How Much Can Be Garnished in Maryland?
Federal Law:
Under the Consumer Credit Protection Act (CCPA), the maximum amount that can be garnished is the lesser of:
25% of your disposable earnings for that week, or
The amount by which your disposable earnings exceed 30 times the federal minimum wage.
Maryland Law:
Maryland follows these federal guidelines, but there are nuances:
Generally, the same 25% rule applies for most debts.
For child support or alimony, the amount can be higher, up to 65% of your disposable earnings if you're not supporting another family, or 50% if you are, with an additional 5% possible if you're 12 weeks or more in arrears.
Disposable Earnings:
This is your gross income minus legally required deductions like taxes, Social Security, and unemployment insurance.
Types of Debts That Can Lead to Garnishment
Wage garnishment is a legal procedure where a portion of your earnings is withheld by your employer to pay off a debt.
This can happen due to unpaid taxes, child support, student loans, or judgments from lawsuits.
In Maryland, this process is regulated by both state and federal laws to ensure that you're not left without means to support yourself.
- Court Judgments: For unpaid credit card debts, medical bills, or personal loans, creditors must first sue you, win a judgment, and then request a garnishment.
- Taxes: The IRS or Maryland Comptroller can garnish wages for unpaid taxes without a court order.
- Child Support and Alimony: These have special rules allowing for higher garnishment percentages.
- Student Loans: The Department of Education can garnish wages for defaulted federal student loans.
Your Rights Under Maryland Law
Protection from Termination:
Maryland law protects you from being fired for one wage garnishment in a calendar year due to a single debt.
Exemptions:
Certain types of income like Social Security, disability, and unemployment benefits are generally exempt from garnishment.
How to Stop or Prevent Wage Garnishment
- Negotiate with Creditors: Sometimes, you can work out a payment plan that might prevent garnishment.
- Bankruptcy: Filing for bankruptcy can stop wage garnishment immediately through an automatic stay.
- Chapter 7 can eliminate many types of debts, potentially stopping garnishment permanently.
- Chapter 13 allows you to restructure your debts into a manageable plan, possibly including back payments on wages already garnished.
- Legal Help: Consulting with a bankruptcy attorney can provide you with personalized strategies to address your situation. At Broumas Law Group, we offer a free initial consultation to discuss your options.
What to Do If Your Wages Are Being Garnished
- Verify the Garnishment: Check if the garnishment is legal and if the amount is correct. Errors can happen.
- Understand Your Exemptions: You might qualify for exemptions that could reduce or eliminate the garnishment.
- Seek Legal Advice: An attorney can help challenge the garnishment, negotiate with creditors, or guide you through bankruptcy if necessary.
- Budget and Plan: Adjust your budget to manage the reduced income and plan for future financial stability.
Wage garnishment can feel like a heavy burden, but there are legal pathways and protections in place to help Maryland residents manage this stress.
If you're facing wage garnishment or are worried about it happening, remember you're not alone, and there are steps you can take.
At Broumas Law Group, we're here to help you navigate these waters, offering strategies to protect your income and secure your financial future.
Interested in learning more or need assistance? Contact us for a free consultation where we can discuss your specific situation and explore your options.
J. Michael Broumas, Esq.
Maryland Bankruptcy Lawyer and the owner of Broumas Law Group LLC.
Here at Broumas Law Group, I'm committed to demystifying bankruptcy for those who need it most. I've seen firsthand how overwhelming debt can be, but I also know the relief and freedom that comes with a well-executed bankruptcy plan.
So, I encourage you to explore our blog, where I share strategies, insights, and the latest in bankruptcy law to help you navigate your path to a brighter financial future.
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